Financial Risk Management (FRM) refers to the set of disciplines responsible for managing financial risk, particularly with respect to the Clearing Agencies. These disciplines include credit risk, market risk, liquidity risk, quantitative risk, and model risk. Underpinning all FRM activities is a strong emphasis on data quality — accurate, timely, and complete data is essential to the integrity of decision-making processes.
FRM operates under the oversight of key governance bodies, particularly the internal Management Risk Committee and the Board Risk Committee, to ensure alignment with the firm’s risk appetite and regulatory expectations.